International Workplace Group reports higher H1 revenue and reiterates guidance

International Workplace Group plc (LON:IWG), the world’s largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ, Signature, has issued its results for the six months ended 30 June 2026.

6% YEAR-ON-YEAR GROUP REVENUE GROWTH DRIVEN BY CONTINUED NETWORK EXPANSION

Growth initiatives continuing to deliver expected results  

•   Record system-wide revenue with growth of 11% to $2.4bn (H1 2025: $2.2bn)

◦    6% year-on-year group revenue growth to a record $2.0bn (H1 2025: $1.9bn)

◦    84% growth in recurring management fee revenue year-on-year to $35m (H1 2025: $19m)

◦    5% Company-owned revenue growth year-on-year to $1.9bn (H1 2025: $1.8bn)

◦  Managed & Franchised segment continues to grow in importance for the Group – now representing 22% of system-revenue (H1 2025: 18%) and 32% of all open rooms (H1 2025: 25%)

•   Network & Coverage: Signings and openings continue to increase year-on-year

◦    H1 2026 signings 728 (H1 2025: 496)

◦    H1 2026 openings 425 (H1 2025: 338)

•  Increase in Q2 cashflow before corporate activities and M&A to $36m; as previously disclosed, Q1 cashflow impacted by accounts payable processes efficiencies

•  Following a period of increased investment, overheads expected to reduce significantly in H2 further strengthening the Group’s cashflow

•   Balance sheet strengthened further with an increase in the 2032 Eurobond to €500m from €300m

•  The RCF was renewed and extended in July 2026, increasing the size by $280m to a $1bn facility and duration to 2031 from 2029

•   $109m of capital returned to shareholders to 30 June 2026, comprising dividends and share buybacks.

◦    $150m of share buybacks announced so far for 2026

◦    Continuing our progressive dividend policy with an interim dividend of 0.48c per share

•   Reiterating both 2026 and mid-term EBITDA guidance

Summary financials and segment overview

1.         EBITDA excluding adjusting items and depreciation of landlord contributions (cost reimbursements) on leased properties

2.         Refer to the Chief Financial Officer Reviews and the Reconciliation for alternative performance measures schedules for the details

3.         See the Glossary for the defined terms

Managed & Franchised: 84% increase in recurring fee income as system-wide revenue continues to build, driven by significant growth across our network and pipeline

•   36% system-wide revenue growth year-on-year to $535m (H1 2025: $392m)

•   60% growth in total fee income to $80m

◦    84% growth in recurring management fees to $35m (H1 2025: $19m)

•   RevPAR in Managed Partnerships evolving as expected across cohorts

•   Previous investments in partnership sales team yielding results as signings accelerated to 711 (H1 2025: 413)

•   Signings converting into openings at pace as nearly 400 centres opened in H1 2026 (H1 2025: 309)

•   At the end of H1 2026, 358,000 rooms were open with a further 257,000 rooms that were signed but not yet open. Once these rooms are all open and mature, they are expected to produce system-wide revenue of over $2bn per year

4.         Signed rooms that have not been opened after 2 years have now been removed from the pipeline

Company-owned: Strategic execution driving revenue growth   

•   Company-owned revenue growth accelerated to 5% year-on-year giving confidence in our FY26 guidance of at least 4%

•  Occupancy levels have been maintained while increasing rates across the group as previous price initiatives expire, resulting in RevPAR growth of 11% to $407 (H1 2025: $367)

•  Recent centre acquisitions achieved at highly attractive valuations with minimal cash outflow have significant profitability potential through integration into our platform and leverage of our scale-driven cost efficiencies with related profitability expected to be seen during H2

Overheads: Strategic investment driving record revenues

•  Group overheads increased to $315m (H1 2025: $250m) reflecting continued investment in sales, marketing and operational capability

•   Investment in the Partnership sales team and increased marketing expenditure of $10m to $32m contributed to record signings, openings and system revenue

Financing and Net Debt

5.         Presented net of amounts related to the effective portion of forward exchange contracts and cross-currency interest rate swaps that hedge the principal component of the debt

Net financial debt increased over the half driven by:

•   Investment into growth initiatives during H1 2026, with overall overhead costs expected to reduce during H2 through our operational efficiency programmes

•   Repurchase of 37,971,536 shares for $100m as part of the share buyback programme. The Company increased the share buyback programme to $150m on 30 June 2026

•   Working capital relating to, and payment for, roll-in acquisitions

•   Annual cash bonus payments which were accrued at 31 December 2025

As discussed during our Q1 trading update on 12 May 2026, Net debt increased from $715m to $858m (an increase of $143m) as we rolled out automated supplier invoice software. Cash generation increased meaningfully in Q2, and despite returning $47m to shareholders via share buybacks, a dividend of $9m and small bolt-on M&A, net debt flattened out to $880m, an increase of $22m. This reflects underlying cashflow generation before corporate activities and M&A in Q2 of $36m.

The Company has no exposure to either interest rates or FX on its bonds – coupons are fixed coupon and bonds are hedged into USD.

We maintain our commitment to a BBB credit rating.

Christian Schmitz, Chief Executive Officer of International Workplace Group plc, said:

“Our strategy remains clear. We continue to expand our global coverage at pace, building an unrivalled network that extends from the world’s largest cities to smaller towns and regional markets. Through our capital-light partnership model, we continue to increase customer choice while creating long-term value for our partners and shareholders.”

Outlook and guidance

Despite the macroeconomic backdrop, centre signings and openings have continued to accelerate, enterprise customer enquiries and sales are increasing, revenue has accelerated and pricing has been positive. Inflationary pressures have been seen globally, and the Company has taken steps to reduce costs in H1 2026, the benefits of this will be seen in H2 2026 and beyond.

Accordingly, our expectations for 2026 remain unchanged. We maintain 2026 guidance as communicated at our Q1 trading update on 12 May 2026:

•   Adjusted 2026 EBITDA of $585m-$625m

•   Company-owned revenue growth of at least 4%

•   Recurring management fee income of $80m

•   Maintenance of an investment grade credit rating and leverage on a Net debt / EBITDA basis to finish 2026 slightly elevated compared to December 2025

Additionally, we expect cash flow performance in the second half of 2026 to be ahead of the prior year. We also reiterate our guidance of at least $1bn of adjusted EBITDA in the medium term.

We have announced $150m of share buybacks so far in 2026, ahead of $130m delivered in 2025, and we will update accordingly through 2026.  

Financial calendar

Results presentation

Mark Dixon, Founder and Executive Chair, Christian Schmitz, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a virtual presentation of the results today for analysts and investors at 9.00am UK time.

The presentation will be available via live webcast and will be available to view at the following link https://brunswickgroup.zoom.us/webinar/register/WN_2wkraJh-T2C2n9NqBw0eXQ